Finding a Lender

Home loans are available from several types of lenders - commercial banks, mortgage companies, savings and loans and credit unions. To find out which lender is right for you, read the following tips:

Avoid any lender who:

Tells you to falsify information on your loan application.

Pressures you to apply for a loan or to apply for more money than you need.

Tries to talk you into monthly payments you can't make.

Fails to provide required loan disclosures or tells you not to read them.

Misrepresents the kind of credit you're getting.

Promises one set of terms, then gives you another set of terms to sign without a good explanation for the change.

Tells you to sign blank loan forms and says they'll fill them in later.

Won’t give you copies of documents that you've signed.

To find a good loan through a reputable lender:

Shop around with several lenders. Different lenders may quote you different prices, so you should contact several lenders to make sure you're getting the best price.

Check with mortgage brokers. Brokers can help you find a lender. Getting help from a broker can mean a wider selection of loan choices. However, brokers are not obligated to find the best deal for you unless they have contracted to act as your agent, so it is wise to check with more than one broker.

Some financial institutions operate as both lenders and brokers. Whether you are dealing with a broker or a lender may not always be clear. Most brokers' advertisements do not use the word “broker,” so be sure to ask whether a broker is involved. Brokers are usually paid a fee for their services that may be separate from and in addition to the lender's fees. Ask each broker you work with how he or she will be paid so that you can compare and negotiate the different fees.